2. Pricing
• Business models
– Who is your customer?
– What does your customer value?
– How do you make money?
• Strategy
– How will you beat your competitors?
– How do you differentiate what you do?
• Publishing permits some sloppiness here because each
publication is ‘different’
R'tist @ Tourism
4. • Creating value- typical publishing value chain
– Gathering
– Selecting and organizing
– Synthesizing
– Distributing
– Key drivers ~ quality, speed and cost
• Creating value - where will you add it?
– Gathering
– Selecting and organizing
– Synthesizing
– Distributing
R'tist @ Tourism
5. • Extracting value – which customer segments
will you serve and how?
– Institutional
• Corporate
• Academic
• Government
– Individual
• Society and association Members
• Non-members
– Domestic/national
– Non-domestic
– What % of your revenue comes from each?
– Is that changing online?
– Are you making the most of the ‘reach’ of online?
R'tist @ Tourism
6. – Unit of online content – what is it?
– What do you offer customers?
– Do all customers want the same products and
services?
– Do you build to order or prepackage?
– Can you sell more content by enabling more
granular choices – at the article/chapter vs the
whole publication level?
R'tist @ Tourism
7. In order to make a change from “prepackaged” content
• Effective and reliable distribution
• Understanding of what customers want
• Ability to create new products and services
– In theory every customer can buy something different online
R'tist @ Tourism
8. What has changed online?
• Digital assets – not used up by consumption
• Economies of scale – communicate with authors, readers
and customers faster and cheaper
• Economies of scope – extract value across many different
and disparate markets
• Customer records – cost of keeping them and using them
low
– Publishers have the opportunity to sense and respond to
demands rather than simply making and selling products
R'tist @ Tourism
9. Online pricing models
• Institutional/organizational site license sold
to libraries/corporations
• Individual/members subscriptions
• Pay-per-view article sales
– Price of each has an impact on the others
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10. What is the cost of access?
• Pecuniary cost – even small per article fees
suppressed usage
• Non-pecuniary cost – time and inconvenience
to obtain access
– Number of screens to navigate
– Amount of external information to recall
– Action required to have costs subsidized
R'tist @ Tourism
11. What worked well?
• Generalized subscription purchasing – was a success
• It had the following features:-
– Opened up access to all content by all users
– User defined the subscription
– It was pre-paid
• User cost of access – money and effort – effects the
number of articles readers access
R'tist @ Tourism
12. • Examples of article pricing
R'tist @ Tourism
Product Cost ($) Number of
articles
Cost/article
Inter-library loan (ILL) 30 1 30
Document Delivery 25 1 25
Pay-per-article- PEAK 7 1 7
Institutional subscription ~
one online journal
431 143 3
Journal bundle price ~ large
society publisher
24,995 44,500 0.56
Journals and proceedings ~
large society publisher
48,588 699,289 0.07
13. Online Marketing Pricing
• 3 general categories of internet marketing services.
• Internet Marketing Pricing
• SEO Pricing – In general, SEO work can either be done on an existing site, or a
new SEO-friendly website can be created. Based on these situations, provide
unique and customized proposals to every potential client of Marketing after
gathering details and performing own research.
• PPC Pricing – Pay-Per-Click Advertising (PPC), when done correctly, can and
usually should be a major part of every company's online strategies. The
power of PPC to learn and to test is extremely valuable. Since every
company, product, and industry is unique, PPC efforts always have to be
100% customized
• Website Design Pricing – every company should have a good, attractive
website. However, designing and building the website is only the first step in
making profits online.
R'tist @ Tourism
